Francine Way

JULY 14, 2017

As I mentioned in my valuation preparation post , Precedent Transaction is a valuation method that uses the price paid for similar businesses in the past as indicators to a company’s value. The 1st step in Precedent Transaction is to derive the appropriate market multiples (or range of multiples) and control premium for the valuation.

Valuation 130

Valuation M&A Shares DCF 130

JD Supra: Mergers

MARCH 12, 2024

Traditional debt financing was expensive and scarce, expectations on valuations were tricky to navigate, portfolio companies required additional attention, fundraising was not easy and regulators continued to scale up their scrutiny of the industry and its transactions.

Private Equity 197

Private Equity Equities Debt Valuation 197

Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). So, a good valuation model has to take into account the possibilities of a variable having multiple values along with each value’s probability of occurring. To-date, we have lumped them together.

Valuation 130

Valuation M&A DCF Stock 130

Francine Way

JUNE 22, 2020

To pick up where we last left off with valuation, I will cover the topic of a Merger Relative Valuation in this blog post and move on to other non-valuation topics from here. Any debt drawdown and paydown schedule. Getting this part wrong will yield incorrect synergies that will under/overstate the entire valuation.

Valuation 130

Valuation M&A Mergers Mergers and Acquisitions 130

TKO Miller

OCTOBER 3, 2023

TKO Miller Debt Capital Market Analysis Leverage multiples have pulled back significantly in M&A transactions from their 2021 peaks due to a tightening of the lending environment, Sr. Debt / EBITDA, decreased from 4.0x Debt remains most available in the lower middle market sector. in 2021 to 3.5x

Debt Capital Markets 81

Debt Capital Markets Debt Capital Market Capital 81

How2Exit

NOVEMBER 25, 2024

Integrating talent and aligning interests across multiple acquisitions magnifies operational efficiencies, improving prospectives for valuation bumps. Roll-ups involve acquiring multiple small companies within the same industry and integrating them to form a larger operation, thus enhancing scalability and market valuation.

Business 130

Business Mergers and Acquisitions Finance Finance 130

Deal Lawyers

AUGUST 6, 2024

A recent Nixon Peabody memo provides an overview for emerging companies of the differences between the use of convertible debt and simple agreement for future equity for early stage financings.

Finance 113

Finance Finance Debt Valuation 113

TKO Miller

MAY 31, 2023

They have a line of credit they have never used and they have no long-term debt. When an organization has failed to invest in its operations it creates what is called operational debt. I sit on a non-profit Board of Directors. This organization is very conservative. It is a metaphor of course, but it is a useful one.

Debt 87

Debt Profitability Accountant Business 87

OfficeHours

JUNE 5, 2023

DO NOT let yourself fall victim to such a ploy – instead, follow the tips outlined below to stand out in the interview process: Understanding the Purpose of an LBO As you have likely heard time and time again, knowing WHY you are using a valuation method is just as important as knowing HOW to use a valuation method.

Private Equity 147

Private Equity Valuation Equities Debt 147

TechCrunch: M&A

JUNE 29, 2023

million debt. It’s possible that the startup received the founder’s financing in the form of a convertible note, a type of debt that can be converted into equity, which would correspond to the company’s $50.66 million in debt. million in cash. It’s also taking on the startup’s $50.66

Debt 192

Debt Investors Recruitment Food 192

Wizenius

SEPTEMBER 28, 2024

Leverage Buyouts (LBO) are a strategic financial maneuver where a financial sponsor, typically a private equity firm, acquires a target company by utilizing a substantial amount of debt alongside a smaller portion of equity. In an LBO scenario, both debt and equity investors commit capital to the target company.

Debt 52

Debt Funds Private Equity IPO 52

Successful Acquisitions

SEPTEMBER 11, 2023

The Verdict is In on the Sell Side: Business Valuation Basics By Brian Goodhart Valuation is a fundamental aspect of the complex and intricate world of mergers and acquisitions. Today, we will delve into the intricate art and science of valuation, exploring its various components and purposes.

Valuation 64

Valuation Business Mergers and Acquisitions Discounted Cash Flow 64

TechCrunch: M&A

JULY 27, 2023

Uplift had raised nearly $700 million in equity and debt, securing $123 million at a reported $195 million valuation in its Series C round alone. ” Laplanche is referring to the BNPL-style product that Upgrade launched in October 2021, which lets users pay down their debt over six to 36 months with a fixed interest rate.

Finance 244

Finance Finance IPO Debt 244

Wall Street Mojo

JANUARY 15, 2024

What is a Collateralized Debt Obligation? Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work? CDOs provide investors with a diversified portfolio of debt instruments across different risk levels.

Debt 52

Debt Banking Bank Investors 52

iMerge Advisors

APRIL 9, 2025

A Strategic Guide for Founders and CEOs For software founders contemplating a sale, the question of valuation is often the firstand most complexhurdle. Understanding the Core Valuation Framework At its core, software company valuation is typically based on a multiple of earnings or revenue. What is my software company worth?

Valuation 40

Valuation M&A Private Equity Sale 40

Focus Investment Banking

APRIL 7, 2024

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. Cost of Leveraged Buyouts: PE firms often use leveraged buyouts (LBOs) to acquire companies, relying heavily on debt financing.

Private Equity 52

Private Equity Valuation Equities Business 52

Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations. In our forecast, Cash rises too much, and Debt / EBITDA goes from 5.0x

Valuation 64

Valuation DCF Debt Financial Models 64

Sun Acquisitions

MAY 15, 2023

Here is a beginner’s guide to understanding valuation for family businesses. Identify Your Valuation Goal: Before getting started, you must identify the overall objective you are trying to achieve with this process. Doing research ahead of time will help determine which valuation methods are best suited for your needs.

Valuation 52

Valuation Business M&A Debt 52

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. However, company valuation isn’t as simple as slapping a price on your business. It’s a delicate balancing act, as inaccurate valuations have polarizing consequences.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Devensoft

AUGUST 22, 2023

Navigating M&A valuations with precision is paramount for informed decision-making. Our guide equips you with step-by-step instructions on employing the Enterprise Value Calculator effectively, complete with insights into optimal practices for precision valuations. Let’s dive into the intricacies of this invaluable resource.

Valuation 52

Valuation M&A Utilities Mergers and Acquisitions 52

Wizenius

AUGUST 7, 2023

Valuation and a company's balance sheet lie at opposite ends of the financial spectrum. While a balance sheet provides a snapshot of a company's financial position on a specific date, valuation reflects expectations of the company's worth several years into the future.

Valuation 52

Valuation Investment Banking Financial Analysis Financial Models 52

TKO Miller

AUGUST 30, 2023

middle market valuation multiples and deal volume are down slightly through Q2 of 2023. this year through June 2023, but middle market valuations are down approximately 8% based on the TKO Miller analysis. Packaging Trends Q2 M&A Update U.S. The S&P 500 Index is up 16.5%

Middle Market 91

Middle Market Valuation S&P Debt 91

OfficeHours

OCTOBER 20, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates.

Investors 130

Investors Private Equity Equities Debt 130

OfficeHours

OCTOBER 16, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates.

Investors 100

Investors Private Equity Debt Equities 100

RKJ Partners

AUGUST 6, 2017

Yet, taking this equity investment means accepting painful ownership dilution due to the low valuations given to companies at this early stage. No Early Payback Penalties – Many venture debt lenders attempt to discourage early payment of their loans with onerous pre-payment penalties - 1% of the entire loan amount is common.

Debt 40

Debt Capital Raising Capital Equities 40

How2Exit

MARCH 5, 2023

Ali Taraftar left Canada in 2007 to go to the United States and met a couple of investment bankers who put together a firm to do debt restructuring and mortgage modifications. Concept 3: Debt Restructuring Can Save Businesses The current economic climate has put many businesses in a precarious situation.

Business 130

Business Capital Negotiation Debt 130

OfficeHours

JULY 18, 2023

In a roll-up strategy, a private equity firm will attempt to consolidate a large number of smaller firms into a single, professionalized company with numerous benefits, including economies of scale and fixed cost leverage, valuation uplift (so-called “multiple arbitrage”), and acquisition expertise, among others.

Private Equity 130

Private Equity Equities Investment Mergers and Acquisitions 130

iMerge Advisors

APRIL 13, 2025

For software and technology founders considering a sale, the CIM is a strategic asset that can shape buyer perception, drive valuation, and accelerate deal momentum. For buyers, its the foundation for initial valuation modeling and due diligence planning. Buyers will assess scalability, defensibility, and technical debt.

Valuation 40

Valuation M&A Mergers and Acquisitions Business 40

PCE

AUGUST 15, 2024

This uneven economic landscape makes the accurate valuation of your company (or a business interest, an intangible asset, or even your debt) more difficult than usual—and more essential than ever.

Economics 52

Economics Valuation Debt Business 52

Francine Way

JULY 9, 2017

After the prospective buyers review the CIM and conduct their own preliminary diligence analyses to determine their level of interest and initial valuation of the sale, they will typically solicit internal support for the acquisition. The reason for this is time.

M&A 130

M&A Acquisitions Valuation Sale 130

How2Exit

SEPTEMBER 9, 2024

Tune in to explore the fascinating journey of Steve, his approach to valuations, and how he successfully navigated his first acquisition during the tumultuous COVID-19 period. Preparing for Sale: Business owners should invest time in preparing their businesses for sale to maximize valuation and attract potential buyers.

M&A 130

M&A Mergers and Acquisitions Financial Analysis Financial Statement 130

Focus Investment Banking

SEPTEMBER 19, 2024

For buyers, who rely heavily on debt financing to fund acquisitions, a rate cut—especially one larger than expected—creates immediate opportunities. Here’s how: Lower Cost of Debt Private equity firms typically use leverage (borrowed capital) to finance a significant portion of their acquisitions.

Mergers and Acquisitions 52

Mergers and Acquisitions Acquisitions Mergers Debt 52

Wall Street Mojo

JANUARY 4, 2024

read more is that amount of interest, which is due for a debt or bond but not paid to the lender of the bond. Investors and financial professionals must be aware of accrued interest when engaging in transactions to avoid discrepancies in the valuation and pricing of securities. read more for reporting income or expenses.

Accountant 98

Accountant Financial Models Financial Modeling Financial Statement 98

Growth Business

OCTOBER 25, 2024

The stake will depend directly on the amount you want to raise compared to your business’s total valuation. To determine the value of the shares specifically, you need to adjust for the debt and cash in the business. Factors to consider There are lots of factors that will influence the equity you will end up needing to sacrifice.

Equities 98

Equities Investment Private Equity Valuation 98

Wall Street Mojo

JANUARY 15, 2024

Liabilities come next, divided into current liabilities (like debts and payables) and long-term liabilities (e.g., Unlock the art of financial modeling and valuation with a comprehensive course covering McDonald’s forecast methodologies, advanced valuation techniques, and financial statements.

Accountant 98

Accountant Financial Statement Debt Financial Models 98

Lake Country Advisors

OCTOBER 31, 2024

General Partnerships In a general partnership, all partners are responsible for managing the business and are equally liable for debts and legal obligations. For example, general partners may be fully liable for business debts, while limited partners or those in LLPs are protected from personal liability.

Business 52

Business Profitability Debt Shares 52

Global Newswire by Notified: M&A

JUNE 15, 2023

Eagle Ford owns approximately 180 acres of land near San Antonio and a producer of silica sand which is an essential component used in fracking operations in the oil and gas extraction industry.

Utilities 74

Utilities Debt Valuation Manufacturing 74